Cosmetics market in China is exploding

It is true that money can’t buy happiness, but in beauty it can greatly help. The similar proportionate increase is reported for purchasing power on Cosmetics market in China. We can evaluate China’s economic health by his consumption trends of beauty products. Recent years showed a growth in cosmetics market in China.

Cosmetic market in China

The United States are undoubtedly the first cosmetics market in the world with over 55 billion in sales per year. America and Europe have a global cosmetics market share of 20%,while Asia holds 35%. China, being mainly responsible for that big share has become the second largest market for cosmetics.

Skin care products are the most popular. Although the makeup market started later, it is rapidly developed and sales growth is increasingly high.

Foreign cosmetics brands in China

Foreign cosmetics brands are the predominant players in this market. About 90% of the cosmetics market in China is controlled by foreign brands. L’Oreal, Procter & Gamble, Beiresdorf, Estée Lauder and Mary Kay, are the top 5 sales in this area. Procter & Gamble have a strong presence thanks on Chinese market thanks to their leading brand Olay (yùlányóu玉兰油). L’Oreal, the world’s largest cosmetics company is still up growing in the Chinese market. Since the integration of Chinese traditional plants in their lotions, L’Oreal has succeeded in this market in China. Moreover, the brand is most attentive to its Chinese consumers always looking for ways to improve its products according to the needs of its customers.

Others cosmetics brands in China

Chinese beauty brands account for only 10% of the total market. Korean brands have introduced the Chinese market by selling their own brands, but also as concepts producers or suppliers. Chinese brands just focusing on marketing, have become dependent on these Korean suppliers. As for Japanese brands, they have been for a long time established in China with top brand Shiseido.

Chinese high-range cosmetics

The cosmetics market is in full growth and this one isn’t ready to stop. However, the offer of high standing capacity is not enough exploited. Indeed, the Chinese don’t see any more the cosmetics like products booked by an elite, but rather like a consumer goods. The future new coming foreign brands should try to enter the Chinese market as high-end beauty brand because the demand for products of this range will never stop and price range is quite small

Moreover, the Chinese consumers are captivated by products coming from the west and by high-range products. They will not hesitate to pay more to have a product of a particular brand. Indeed, to have a cosmetic product from a luxury brand allows the Chinese to show their wealth. A thing which they are particularly fond of.

Chinese consumers of cosmetics

Chinese consumers are increasingly concerned about their skin and their image. With increasingly abundant pollution in China, they search products being able to protect their skin. Moreover, with rising income, they don’t skimp in purchases expense to have clear skin. While the skin care segment share is 40% in China, it is only 30% in the rest of the world.

French Brands still ahead of the game in China

The Chinese consumers are fond of French cosmetics brands. The Chinese have a positive image of France, regarding it as the country of elegance and class thanks to its famous cosmetics and fashion brands. The French cosmetics brands are synonymous of quality in the whole world. In China, the labels “made in France” are put ahead to attract the attention of the Chinese consumers.

The Chinese distribution of cosmetics products

Cosmetics products are mostly distributed in specialized stores, retailers and via the Internet. E-commerce is growing in China. More and more brands are selling theirs cosmetics online. Chinese is the most connected country in the world. The Internet is an accessory in China. The Chinese people are always connected. China counts more than 600 million web surfer. The Chinese use theInternet via their computers, tablet and more largely with their smartphones whatever where they are. They go through these media for, initially search information on a product thanks to the comments and opinions of their peers or key opinion leaders, before carrying out their purchases. The Chinese consumers can spend enormoustime to search opinion on a cosmetic product before buying it.

The Community platform Kimiss, dedicated to the cosmetic products is very popular to the Chinese consumers. Just as Meilishuo, an online shopping guide gives also information tothe Chinese on their cosmetic products. The Chinese consumers buy more online than in offline. In 2013, the online cosmetic product sales represented 7 billion euros, according to the investigations of iResearch. The most known online cosmetics product websites are Jumei and Lefeng. However, we can quote Taobao, Tmall, Jingdon or Amazon.

The Chinese cosmetic market has a lot of untapped potential

The cosmetics market in China is still growing at full speed and it’s not ready to stop. SO you’re ready to run to China and start your business there? Well you’d better hold your horses and think about how to properly do that. Chinese are pretty much online addicts with a whopping 634 million internet users. Needless to say, that is where you need to be.

This means:

Build yourself good brand awareness in China. No brand awareness means that you don’t exist in the Chinese business world.

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Daxue Consulting

Daxue is China’s top strategic-driven research consulting firm, offering a variety of services for those wishing to enter the China market. We source talent and experts from a variety of fields to complete market research through well-known methodologies such as documentary research, store-checks, focus groups, interviews, and benchmark tests - all at a very competitive price thanks to our business model and world-class expertise in China. Each of our projects are tailor-made and implement the latest technological smart tools. As China experts, Daxue is here to help you make the most of this unique market.

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